What is an 'Annualized Total Return'
An annualized total return is the average amount of money earned by an investment each year over a given time period. An annualized total return provides only a snapshot of an investment's performance and does not give investors any indication of its volatility. Annualized total return merely provides a geometric average, rather than an arithmetic average.
BREAKING DOWN 'Annualized Total Return'
A mutual fund could earn returns varying from 3 to 5% each year and have an annualized total return of 3.995%. On the other hand, a fund could also be much more volatile, losing 3% in one year, earning 12% in another and have an annualized total return of 4.23%. The difference is the first fund would offer steady returns while the second would offer widely fluctuating returns.
Annualized Return = [(1+R_{1})*(1+R_{2})...*(1+R_{n})] ^ ^{(1/n)}
Where R = annual return for a given year

Annual Return
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Average Annual Return  AAR
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Total Return
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Average Return
The simple mathematical average of a series of returns generated ... 
Annualized Rate
A rate of return for a given period that is less than one year, ... 
Annual Basis
The return earned by an investment over the course of a year. ...

Professionals
Introduction
FINRA/NASAA Series 66: Section 2 Measuring Portfolio Returns. This section discusses different return measures: return on investment, holding period, annualized, risk free and total returns. 
Fundamental Analysis
The Most Accurate Way To Gauge Returns: The Compound Annual Growth Rate
The compound annual growth rate, or CAGR for short, represents one of the most accurate ways to calculate and determine returns for individual assets, investment portfolios and anything that ... 
Professionals
Measures of Investment Return
Measures of Investment Return 
Investing Basics
Breaking Down The Geometric Mean
Understanding portfolio performance, whether for a selfmanaged, discretionary portfolio or a nondiscretionary portfolio, is vital to determining whether the portfolio strategy is working or ... 
Fundamental Analysis
How To Calculate Your Investment Return
How much are your investments actually returning? Find out why the method of calculation matters. 
Fundamental Analysis
Explaining Annual Returns
Annual return is the standard percentage rate for most investments and credit facilities. 
Forex Education
Scoring Fund Performance Data
By Richard Loth (Contact  Biography)This is the entry we need to complete in the Fund InvestmentQuality Scorecard for an analysis of a mutual fund's performance data: ... 
Term
Understanding Total Returns
Total return measures the rate of return earned from an investment over a period of time. 
Fundamental Analysis
Explaining Expected Return
The expected return is a tool used to determine whether or not an investment has a positive or negative average net outcome. 
Professionals
Measuring Portfolio Returns
NASAA Series 65: Section 16 Measuring Portfolio Returns. In this section different types of risk measures discussed and some sample questions.

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